Question

Sam Sounds received a $290 discount loan to purchase a stereo. The loan was offered at 16% for 90 days. Find the
interest in dollars and the proceeds for the following problem.

Answer 1

The other answer is almost right. Instead of dividing 90 by 365, you divide it by 360.

90/360=.25

16% of 290= 46.4

46.4 ×.25= 11.6 = interest

290-11.6= 278.4= proceeds